Visiting World Bank
country director for Nepal and Bangladesh Ellen Goldstein called for prudence
among all stakeholders to avoid an overly expansionary budget.
Showing concerns over
delays in reaching agreement on a full-year budget, she said from the
perspective of a development partner, uncertainties over the budget seriously
undermine absorptive capacity within the country, and reduce the scope for
commitment of future foreign assistance.
Goldstein also
reiterated the World Bank's commitment to support hydropower development.
"The World Bank Group stands ready to significantly ramp up its support to
develop Nepal’s hydropower potential provided that the government urgently
addresses implementation bottlenecks in ongoing power sector operations,"
she said, during her meeting with caretaker prime minister Baburam Bhattarai yesterday.
"Protracted
implementation delays are holding back the World Bank Group and the private
sector from investing substantially in affordable power generation and
transmission," she added, while discussing the World Bank’s programme of
assistance and its future assistance strategy for Nepal, currently being
developed.
Bhattarai, on the
occasion, noted the need for urgent resolution of the current challenges and
acknowledged transformational investments in hydropower are critical pathways
out of poverty and unemployment for Nepal.
He said he had decided
to form a steering committee across government, chaired by the chief secretary
and including the private sector and development partners, reporting to him to
accelerate hydropower development.
Goldstein also met
finance minister Barshaman Pun and senior officials of the government,
including the chief secretary and finance secretary. World Bank country manager
for Nepal Tahseen Sayed accompanied Goldstein during the meetings.
Goldstein visited World
Bank supported projects in areas of education and agriculture commercialisation
in Kaski district before concluding her visit.
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